Sensex, Nifty Set To Open Higher On News Of US-China Trade Truce

Indian shares look set to open higher on Monday after U.S. President Donald Trump and Chinese President Xi Jinping agreed to keep their trade war from escalating with unlimited possibilities for both countries.

While Trump promised to suspend new tariffs on Chinese products, Xi agreed to purchase a very substantial amount of U.S. products so as to reduce the trade deficit between the two countries.

Investors will likely monitor oil price movements, as both Brent crude and U.S. crude futures jumped over 5 percent after the U.S.-China truce deal.

Meanwhile, India's economic growth sharply slowed in the July to September quarter and the expansion was slower-than-expected, due to weaker farm output and private consumption, official data showed.

Gross domestic product grew 7.1 percent year-on-year after an 8.2 percent expansion in the three months to June, figures from the Central Statistics Office showed Friday. Economists had forecast 7.5 percent growth. The latest pace of growth was the weakest in three quarters.

Asian stocks rallied this morning, with major indexes in Australia, China, Hong Kong, Japan and South Korea climbing 1-3 percent.

The dollar weakened across the board on expectations of slower pace of rate hikes and ahead of Fed Chair Jerome Powell's testimony before a congressional Joint Economic Committee due this week.

The Mexican peso jumped over 1 percent on the buzz that newly sworn-in Mexican President Andres Manuel Lopez Obrador might change his earlier plan to cancel an airport construction.

U.S stocks finished notably higher on Friday as investors cheered optimistic comments from Trump and Xi on trade ahead of the crucial G20 meeting. All the major averages rose around 0.8 percent.